Unifi (NYSE:UFI – Get Free Report) and G-III Apparel Group (NASDAQ:GIII – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Valuation & Earnings
This table compares Unifi and G-III Apparel Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Unifi | $531.30 million | 0.23 | -$24.56 million | ($0.82) | -8.10 |
| G-III Apparel Group | $2.96 billion | 0.46 | $67.35 million | $3.04 | 10.49 |
G-III Apparel Group has higher revenue and earnings than Unifi. Unifi is trading at a lower price-to-earnings ratio than G-III Apparel Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Unifi and G-III Apparel Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Unifi | -2.91% | -6.71% | -4.00% |
| G-III Apparel Group | 4.75% | 5.53% | 3.71% |
Institutional & Insider Ownership
67.7% of Unifi shares are held by institutional investors. Comparatively, 92.1% of G-III Apparel Group shares are held by institutional investors. 20.5% of Unifi shares are held by company insiders. Comparatively, 15.0% of G-III Apparel Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings for Unifi and G-III Apparel Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Unifi | 1 | 0 | 0 | 0 | 1.00 |
| G-III Apparel Group | 0 | 3 | 3 | 0 | 2.50 |
G-III Apparel Group has a consensus price target of $34.75, suggesting a potential upside of 8.97%. Given G-III Apparel Group’s stronger consensus rating and higher possible upside, analysts clearly believe G-III Apparel Group is more favorable than Unifi.
Volatility and Risk
Unifi has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, G-III Apparel Group has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.
Summary
G-III Apparel Group beats Unifi on 13 of the 14 factors compared between the two stocks.
About Unifi
Unifi, Inc. is a textile manufacturing company that produces synthetic and recycled yarns for customers in the apparel, hosiery, home furnishings, automotive, industrial and other consumer markets. Its products include polyester and nylon textured yarns, staple fiber and related value-added textile materials used in fabrics and finished goods. The company is best known for its REPREVE brand, which transforms recycled plastic bottles and other materials into performance fibers. REPREVE fibers are used in products designed to offer attributes such as moisture management, stretch, softness, thermal performance and enhanced durability.
About G-III Apparel Group
G-III Apparel Group, Ltd. is a fashion company that designs, sources, markets and distributes apparel and accessories. Its products include outerwear, dresses, sportswear, handbags, footwear and other fashion items, sold through wholesale customers, company-operated stores and digital channels. The company works with a portfolio of owned and licensed brands. Its owned brands include DKNY, Donna Karan, Karl Lagerfeld and Vilebrequin; its licensed and partnered brands have included Calvin Klein and Tommy Hilfiger.
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